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distributed to Mr. Bruecher from Bruecher Foundation.
Respondent’s determination that Mr. Bruecher received
constructive dividends is sustained.
2. Section 6651(a)(1)--Failure To File
Respondent determined that Bruecher Foundation is liable for
an addition to tax under section 6651(a)(1) in the amount of $948
for taxable year ended March 31, 2000.
Section 6651(a)(1) imposes an addition to tax for the
failure to file timely a required return unless the failure is
due to reasonable cause and not due to willful neglect.
“Reasonable cause as applied in section 6651 has been defined as
the ‘exercise of ordinary business care and prudence.’” Estate
of Duttenhofer v. Commissioner, 49 T.C. 200, 204 (1967) (quoting
Southeastern Fin. Co. v. Commissioner, 153 F.2d 205 (5th Cir.
1946), affg. 4 T.C. 1069 (1945)), affd. 410 F.2d 302 (6th Cir.
1969); see also sec. 301.6651-1(c)(1), Proced. & Admin. Regs.
(“If the taxpayer exercised ordinary business care and prudence
and was nevertheless unable to file the return within the
prescribed time, then the delay is due to a reasonable cause.”).
Whether the failure to file on time was due to reasonable
cause is primarily a question of fact to be decided from all the
circumstances in a particular case. See Estate of Duttenhofer v.
Commissioner, supra.
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